WILL N.Z. SEEK DOLLAR LOAN FROM AMERICA?

Greymouth Evening Star, 20 August 1949, Page 6

WILL N.Z. SEEK DOLLAR LOAN FROM AMERICA?

NEW YORK, August 18. —Financial authorities in Washington, commenting on a report from Wellington that New Zealand was inquiring about the possibilities of dollar loans from Canada and the United States, said that New Zealand could apply to the Export-Import Bank or go on. the open money market for a dollar loan. New Zealand is not a member of the World Bank. ■ Export-Import Bank officials said that no approach had been made by Nev/ Zealand for a loan. They declined to comment on the prospects if an application was made. Ottawa Comment .In Ottawa, -an informed source said that as far as he was aware New Zealand had made no formal request for a dollar loan from Canada, but if such a request was received Canada would give it consideration. He said that whether New Zealand would get such a loan would depend on how desperately she needed it, and on Canada’s own dollar standing at the time. The World Bank today granted a 34,000,000-dollar loan to India. The loan is for 15 years, with 1 per cent, commission and 3 per cent, interest, and it will be used for rehabilitation and the development of State railways. Mr Eugene Black, president of the bank, in announcing the loan, said it was hoped in the near future to make additional loans to India, bringing the total to 75,000,000 dollars. He said there had been no discussion with other members of the British Commonwealth on the possibilities of loans. South African Negotiations The South African Minister of Finance (Mr N. C. Havenga) announced on his arrival in New York that he would begin immediate discussions with the Export-Import Bank to try to arrange a dollar loan for South Africa. He declined to say how much South Africa wanted to borrow. Mr Havenga said that South Africa was not interested in gifts. She wanten to borrow on a commercial basis. South Africa did not intend to place unnecessary obstacles in the way of American imports or to maintain existing restrictions longer than necessary, he said. “If we have to turn our backs on multilateral trade it will be only because we are forced into that position, not because we seek it voluntarily or have not done our utmost to avoid it. We are acutely aware of the obstacles which the United States places in the way of our export trade, and must pay for a large part of our American imports in gold —the world’s only real currency.” Mr Havenga said that American business had almost entirely neglected South Africa as a field for investment. It had been satisfied with the benefit from South Africa’s heavy international trade and had not helped to maintain conditions which made a continual trade flow possible.